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Wednesday, August 25, 2010

Switzerland: A parasite feeding on Africa and Third World Countries?

By Lord Aikins Adusei

For more than half a century the Alpine nation of Switzerland has built a reputation as the world’s centre for tax evasion, fraud accounting, money laundering, racketeering, and above all a staunch ally of corrupt third world leaders and a great beneficiary of third world corruption.

Various categories of persons including popes, presidents, prime ministers, corrupt dictators, wealthy business men, and drug dealers have all used and benefited from the banking secrecy laws of Switzerland. As a result her economy has been described as an underground economy, a deposit box for dirty money and a dirt-driven economy.

Over the last couple of years countries such as United States, Germany and France have argued that they have become victims of Swiss illegal financial activities and as result have stepped up their campaign to get Swiss authorities to cooperate in fighting tax evasion and money laundering. The campaign has even brought a row between the German Finance Minister and members of Swiss parliament. These nations claim they are loosing billions of dollars annually through tax evasion and other illegal financial activities. In 2009 an action by the US Justice Department against the Swiss Banking giant UBS earned the United States close to $1 billion. In 2001, the United States learned that the Swiss had protected the bank that handled finances for Osama Bin Laden. One of them, the Bahrain International Bank, had funds transiting through non-published accounts of Clearstream, which has been qualified as a “bank of banks” and was involved in one of Luxembourg’s major financial scandals.

Western governments have argued that dirty money in many forms welcomed by Switzerland allows the proceeds of corruption, drug trafficking, racketeering and terrorism to tag alongside and deny the world’s poor the chance to escape poverty. “Swiss banks are reputed to be holding an estimated 35% of the world’s private and institutional funds (or 3 trillion Swiss francs)”.1

However, of all the victims of Swiss banking secrecy laws and her shady banking practices, developing countries in general and African countries in particular seem to have suffered the most. The global infrastructure of international financial secrecy with headquarters in Switzerland has helped bleed trillions of dollars in illicitly generated money out of Africa and the rest of the developing world. The activities of Swiss banking institutions and real estate companies have plunged third world nations into debts, poverty, misery, malnutrition, diseases, economic meltdown, infrastructure decay and political instabilities through the help they give to corrupt politicians, civil servants, the business elite and corrupt multinational corporations who collude and connive with the corrupt entities to loot and hide the proceeds of their ill-gotten gains.

Many third world countries especially those in Africa lack the infrastructures needed to run successful economies. They lack schools, hospitals, roads, harbours, rail infrastructure, irrigation facilities, electricity, clean water, telecommunication, sanitation facilities because of the loots. Many children are orphaned and malnourished and many do not have access to education and healthcare because money meant for all that are stolen and are sitting in Swiss banks such UBS, Credit Suisse.

There has not been a single corrupt politician or dictator in Africa, Latin America and Asia who has not had dealings with this secretive alpine country. While third world countries continue to struggle to provide the basic necessities of life Swiss economy is washed with money that could save millions from hunger, starvation and diseases.

Every year since the year 2000 developing countries receive about $100-billion in aid annually from rich countries with about $10-billion going to Africa but these rich countries headed by Switzerland receive about $900- billion from these poor countries ($150-billion from Africa) in the form of tax evasion, embezzlement, fraud accounting, debt servicing and corruption. The World Bank’s Stolen Asset Recovery initiative estimates the cross-border flow of proceeds from criminal activities, corruption and tax evasion at between $1 trillion and $1.6 trillion per year, about half of which come from developing and transitional economies.

Global Financial Integrity agrees with World Bank assessment and says, “$900-billion is secreted each year from underdeveloped economies, with an estimated $11.5 trillion currently stashed in havens. More than one quarter of these hubs belong to the UK, while Switzerland washes one-third of global capital flight”.2

The Africa Union says 25 percent of GDP of African States is lost to corruption every year amounting to more than $150-billion a year.3

The negative impact of that has been increasing the cost of goods by as much as 20%, deterring investment, holding back development and preventing the people from escaping poverty. The fact as pointed out by GFI is that the money that denies poor countries the chance to escape poverty sits in Swiss Banks.

Over the last couple of years a number of Swiss banks have been accused of accepting money from dictators like Sani Abacha, Mobutu, Lansana Conte, Gnassingbe Eyadema, Arap Moi, Omar Bongo, Obiang Nguema, Blaise Campore, Denis Sassou Nguesso, Eduardo dos Santos, Sadam Hussein, Ferdinand Marcos, Baby Doc Duvalier, Hosni Mubarak, Yoweri Museveni, Augusto Pinochet, Gaddafi and the evil genius Ibrahim Babangida without due diligence and without questioning the source of their wealth. For example Swiss economy was the main recipient and beneficiary of Sani Abacha´s $3-5-billion embezzlement of Nigeria´s oil money. When it was discovered that Abacha used the crook banks in this country to steal the money, Switzerland wanted to distance herself from the criminal enterprise run by her banks and benefited by her economy and her citizens. But in the end she had no choice but to repatriate over $700-million to the government of Nigeria after five years of foot dragging.

Again the Arab daily newspapers Asharq Al-Awsat and Al-Hayat reported that former Prime Minister Dr. Iyad Allawi told them in interviews that Saddam Hussein admitted he invested stolen Iraqi money which the Iraqi Governing Council estimated at $40 billion in Switzerland, Japan and Germany, among others, under fictitious company names. ‘Directors of those shell companies would deposit 5% in company bank accounts, and the money was effectively laundered. Swiss and French lawyers did the paperwork’.5 One million Iraqis died during the UN oil for food programme while money that could have saved them was accepted by Swiss Banks and their corrupt counterparts in Japan and Germany.

Also after 18 years of legal wrangling Switzerland agreed to let the people of Philippines receive the $684m looted by Ferdinand Marcos and kept by her crook banks. Switzerland kept close to $700m while children were starving to death and hospitals were closing down for lack of medicines and electricity.

Furthermore, between August 2001 and 2004, Peru recovered nearly over $180 million stolen by her former spy chief Vladimiro Montesinos from several jurisdictions including Switzerland, Cayman Islands and the United States. In May 2007, an agreement between the governments of the United States, Switzerland and Kazakhstan allowed for the repatriation of $84 million denied the people for many years. Again it took Switzerland 12 years to return $74m of the $110m stolen by Raul Salinas to the government of Mexico. Switzerland still has in her possession the money looted by the dictator ´Baby Doc´ Duvalier 24 years after he was chased away by the poor people of Haiti.6

Additionally, when Mobutu died in 1997 Swiss newspapers reported that the country may be home to at least $5-billion of Mobutu’s stolen assets. The report was also confirmed by CNN World News in September, 1997. The whole world was shocked when Swiss authorities announced that Mobutu’s stolen assets in the country totalled something just under $8m and this was after they had sold his villa for $2-million. The shock sent a chill down the spine of DR. Congo’s president. He has still not recovered and has refused to show any interest in pursuing the money.

In recent years Switzerland has repatriated some of the money her banks criminally accepted at the expense of poor nations and Swiss political leadership is using it to score cheap political point instead of being ashamed of it. Mali has received just $2.5 million out of the estimated $5-billion deposited in that country by Mali’s corrupt political leaders among them former dictator Moussa Traore. Argentina has also received $4.5 million from Switzerland in a bribery case.

It is believed that most of the $2 billion stolen by ex- President Arap Moi's family is stashed in Switzerland and her sister countries in the Alpine region. In 2003, investigation by the international risk consultancy firm Kroll on behalf of government of Kenya into allegations of corruption on the part of Arap Moi's government revealed a trail of corrupt practices by Arap Moi, his children, members of his government and their associates with most of their 24 years of ill-gotten wealth hiding in Switzerland, Britain, Luxembourg and the Caribbean. Credit Suisse - Zurich and Citibank- Geneva came up several times as the banks where most of the loots are being kept. "During the beginning of December 2003, Philip Moi made his move through Zara. She left the country for Italy, from where she visited Leichtenstein and Lugano located inside the Swiss canton of Tieino. It is believed that Tieino, though a remote area, consists of over 100 banks. Zara/Rosanna Moi, Philips Italian wife, estimates Philip's worth to be USD750 million."7

Switzerland has mounted a fierce campaign to portray herself as a clean and responsible country. "A senior Swiss diplomat says Switzerland no longer deserve its reputation as a save haven for the ill-gotten gains of corrupt dictators. Speaking in Geneva Ambassador Paul Seger said the government had returned $1.6 billion (SFr1.9 billion) of stolen funds in recent years" but also admitted that "incidents such as the Marcos, Abacha or Montesinos affairs reinforce the international perception that there are still more assets to be returned".8 The question is what reputation does Switzerland deserve apart from being a save haven centre? Is it clean, transparent and cooperative country?

The fact is that Switzerland has not been able to convince anyone that they still do not hold money for Omar Bongo, Lansana Conte, Obiang Nguemaa, Denis Sassou Nguesso, Eduardo dos Santos, Blaise Campore, Gaddafi, Hosni Mubarak, Arap Moi, Gnassingbe Eyadema, Ibrahim Babaginda, Jerry Rawling all of them corrupt dictators with little to show for the billions of dollars that they received from the sale of oil, gas, gold, diamond, timber and other resources.

During the trial of the disgraced Elf executives, they claimed that they paid Omar Bongo $50 million a year for concession rights in his oil rich but economically impoverished country. The executives claimed the millions of dollars were transferred into Bongo's Swiss bank accounts. But we have not heard any comment from Switzerland regarding that money and now that Bongo is dead there is no doubt that what Democratic Republic of Congo went through will be the fate for Gabon should they make any attempt to retrieve the money. It is a common knowledge that the late Omar Bongo of Gabon, Denis Sassou Nguesso of Congo, Dos Santos of Angola, Obiang Nguema of E. Guinea like their old friends (Abacha, Mobutu and Conte) have billions of dollars stashed in Swiss Banks.

Where Swiss leaders do not get it is that their past and present actions have led millions of people who could have lived to die of poverty, malnutrition, starvation and diseases. While more than 800 million Indians live in poverty and in squalor, with little access to education, health, water and sanitation, the BJP party estimated during the May 2009 election campaign that the nation has lost close to $1.4 trillion most of it stashed in foreign banks notably in Switzerland.

In 2007 Swiss federal prosecutors abandoned an investigation into suspected money laundering activities involving the former prime minister of Madagascar. As a result a Swiss bank will refund SFr2.8 million ($2.3 million) to Tantely Andrianarivo, a move that has "disappointed and shocked" the Madagascan government, which has demanded the money back" to be used to help millions of people languishing in poverty.9

There are well known experts who still believe Switzerland deserves her reputation. Richard Murphy, director of Tax Research LLP says: "The idea that Switzerland has a clean economy is a joke; it is a dirt-driven economy".10 Her economy is dirt-driven because her financial institutions (a vital sector of her economy) have been implicated in a number of corruption scandals involving corrupt third world leaders and their associates. In fact Switzerland can best be described as economic vampire, parasite and predator feeding on the economies of poor African and third world countries.

The sad thing about this parasitic behaviour is that it is supported by almost all the citizens of that country. The Swiss Bankers Association claims that four-fifths of the nation supports banking secrecy, revealing a society deeply embedded in a culture of impunity and exploitation, where the licit acts as a shield protecting the illicit in a terribly respectable manner.11 This law is the foundation of all the corruption, embezzlement, tax evasions and all the criminal enterprises that we see in the world.

But Switzerland has had it both ways with her hypocrisy and double standards. Her politicians condemn corruption in Africa and the third world while her banks make fortunes off that corruption. She claims to be a champion of democracy and development but the actions of her banks and companies like SGS, UBS have proven other wise. If there is any justice in the world her banking executives should have been put on trial by the International Criminal Court for crime against humanity because there is no difference between those who use guns to kill and those who kill millions by accepting to hide money that could be used to save them from hunger, starvation, malnutrition, diseases and provide them with medicines, water, shelter, schools and electricity.

The cost of Switzerland's collusion and connivance with the corrupt entities in Africa and the third world fall primarily on the poor people in those poor countries who are denied every opportunity to escape poverty. Many live in squalor with no access to health and sanitation facilities, water, electricity, housing and even food. Over one million people in those poor countries die of malaria, 90% of them from Africa with most of the victims being children. Millions of others also die from starvation, hunger, malnutrition, polio, mizzles, tuberculosis and six killer diseases. The crime of those who die and those who continue to suffer is that they happen to have corrupt incompetent leaders and a counterpart in Europe who is ready to protect their looted funds.

As monies meant for development are stolen and stashed in Swiss Banks, the poor are left on their own to fend for themselves with aid agencies being left to pick the pieces with them. Millions have died, millions are starving and many more are suffering as a result of the role played by Swiss banks, real estate agencies and other companies. In this 21st century such suffering cannot go on forever. Switzerland cannot continue to be a wilful accomplice in crimes involving the death of millions of children and women.

It is therefore time for Switzerland to act as a responsible member of the global community, tear down her banking secrecy laws and her corrupt financial infrastructures that are responsible for the deaths and hunger of millions of people. It is time for Switzerland to stop her banks from accepting looted funds from Africa and the third world that make so many face starvation, hunger and death. The banks must be called to order and should be tasked to employ due diligence in dealing with their clients especially the dictators and their associates from Africa and the third world.

Finally, it is time for Switzerland to turn words of fighting corruption into action and deeds and repatriate all the stolen money to its rightful owners and stop parasiting on poor African and third world countries so they can also have the opportunity to escape poverty like most citizens of Switzerland have.

The Author is a political activist and Anti-Corruption Campaigner. He blogs at www.ghanapundit.blogspot.com

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Ghana's Cancer of Corruption

Join Africa for Democracy Now!!!

The people of Tunisia, Egypt, Libya, Djibouti, Cameroon, Gabon are demanding democracy, rule of law and jobs from their leaders. Since January protests have rocked North African states of Tunisia, Egypt and now Libya. Similar protests have also taken place in Cameroon and Gabon.

The protesters have embraced jet fighters, helicopter gunships, armoured carrier assaults, water cannons, tear gas and camel charge. Thousands have died and tens of thousands have been injured. We cannot watch quietly while a part of humanity is being brutalised. The people of Libya, Cameroon and Gabon need our support. They need our prayers,and our encouragement. Our silence means victory for the totalitarian regimes. Let's us support them. This is the time and opportunity to make a difference. Raise your voice against injustice, oppression and dictatorship. Let us support them Now!!!. Join and invite your friends to join.

POLITICIANS AND THE ROT IN GHANA'S HEALTHCARE SYSTEM

Ghana:The Bright Star that Failed to Shine

A protest message to African Leaders

A message to the Thieves & Tyrants in Africa

"But history offers a clear verdict:governments that respect the will of their own people are more prosperous, more stable and more successful than governments that do not.No country is going to create wealth if its leaders exploit the economy to enrich themselves, or police can be bought off by drug traffickers. No business wants to invest in a place where the government skims 20 percent off the top, or the head of the port authority is corrupt".PRESIDENT BARACK OBAMA

HAVE YOU HEARD OF AFRICOM?

WELL, LIKE COLONIALISM AND IMPERIALISM, AFRICOM IS THE NEW UNITED STATES MILITARY PROJECT THAT SEEKS TO ESTABLISH MILITARY BASES ACROSS AFRICA WITH THE SOLE PURPOSE OF SECURING AFRICA'S RESOURCES FOR THE BENEFIT OF US CONSUMERS.

The Question is : Have Africans fail to appreciate sufficiently the bitter pill they swallowed under colonialism? Have Africans forgotten so soon the human and societal damage wreaked on them by Europeans through centuries of slavery, genocide, economic exploitation, cultural manipulation and political domination? Lord A. Adusei

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African money stolen so far

Africa has lost $140 billion through corruption in the decades since independence, says Nigeria’s president, Olusegun Obasanjo. The huge sum, largely spirited away by leaders and their associates, was one of the main reasons why Africa’s poverty was so severe.

Other names mentioned by the French Weekly were President Henri Bedie of Ivory Coast, 2 billion FF (or $300 million); President Denis N'guesso of Congo, 1.2 billion FF (or $200 million); President Omar Bongo of Gabon, 0.5 billion FF (or $ $80 million); President Paul Biya of Cameroon, 450 million FF (or $70 million); President Haile Mariam of Ethiopia, 200 million FF (or $30 million); and President Hissene Habre of Chad,20 million FF (or $3 million). Bear in mind that this list does not reflect the actual amount of money stolen out of Africa by these dictators. Factually, the mentioned figures had changed significantly since the French Weekly article was published in 1997. There are now new African billionaires and millionaires, including indicted former Liberian President Charles Taylor, President Gabassinga Eyadema of Togo, former Liberian Warlord Alhaji Kromah, former Ghanaian dictator Jerry J. Rawlings, and the late President Samuel Doe of Liberia; a host of African government ministers would make an updated list. While returning funds stolen out of Africa is the right thing to do, efforts must be made by the West and responsible African governments {i.e. the government of Botswana, etc.} to alter international banking laws that will make it difficult for Africa's government officials and corrupt business personalities to transfer huge funds into western banks. The measure was first proposed following the September 11, 2001 attacks but was rebuffed by western financial institutions. Again, we need to revisit this issue: the terrorists could use the thieves in Africa's government Ministries to transfer money into western bank accounts—the money could be used at a later time for terrorists' activities.

(Paul Japheth Sunwabe) Paul Japheth Sunwabe (a native of Liberia) is a graduate student of World Politics at The Catholic University of America. He is also the co-founder and President of Freedom and International Justice, a Washington DC based inclusive political organization seeking democracy, social justice and economic reforms in Africa. For this and subsequent articles, please visit www.freedomjusticef54.org/articles/

A major shift in funding development in Africa is accelerating. Major donors have been urging African governments to eradicate corruption or face cuts in aid. (African Recovery, by Sam Chege)

Despite the country’s abundant natural resources, including copper, gold and diamonds, the people of the Democratic Republic of Congo continue to sink further into poverty. Meanwhile, Mobutu, the late president who died in 1997, amassed a personal fortune of $5 billion, which was deposited in Swiss banks. (CNN world news, September 7, 1997). After more than three years of legal wrangling, the Nigerian government has finally achieved a major breakthrough in it’s efforts to recoup a substantial amount of money looted by the former president, General Sani Abacha. The money was stored in Swiss bank accounts. Abacha, who died of an apparent heart attack in 1998, had been accused of stealing nearly $3 billion from state funds in a series of staggering revelations of how he and his immediate family personalized Nigeria’s treasury. (This DAY, May 30, 2002)

An excellent way to get rich quick is to be the ex-wife of an ex-president. This is what Mrs. Vera Chiluba is claiming from ex president Chiluba in her application to Ndola High Court: She wants US$2.5 billion in a lump sum, and claims she can prove he has the funds available. She also requires maintenance for their nine children, none of whom are in gainful employment. She also needs a share in 6 properties in Ndola and a commercial farm in Chi samba. Also she needs a new executive Mercedes Benz 500 (or 600), a new Land Cruiser, a new Nissan Patrol, drivers as well and a court order for the return of 400 cattle, sheep and goats which are still at State Lodge.This was taken from the Zambia Post and was also reported in The Zambia Society Newsletter compiled by the glamorous Maggie Currie. Are African presidents the only ones so clever in accumulating wealth so quickly? Even ex president Marcos of the Philippines didn’t get hold of such huge amounts in such a short time. (Elias Georgopoullos, Saturday, April 27, 2002 at 12:52:22 PDT)

The French journal, ‘L’Evenement du jeudi published an article stating that the president of Cameroon, Paul Biya, is worth more than $45 billion FCA, money gleaned from the sales of petroleum. Mr. Biya has not refuted these claims.(Post watch Fact File report by Ntemfac Ofeae, undated).

The late president Mobutu of the Democratic Republic of Congo holds the record for financial plunder and national ruin. It is estimated that he stole $4 billion, leaving the country poorer than he found it, with ruined infrastructure and no formal economy to speak of. A close second to Mobutu is the late dictator of Nigeria, Sani Abacha, whose rule left 70 percent of Nigeria’s 120 million people living on less than one dollar per day. In Kenya, the Daniel Arap Moi dictatorship must be given credit for the systematic destruction of what used to be Africa’s economic showcase from the 1960s through the 70s. The authoritative Africa Confidential put Moi’s external bank holdings at $3 billion. In the so-called Goldenberg scandal, the Moi regime bolted with an estimated $1 biliion from its own central bank (12 percent of the national’s GDP), setting off a spiral of inflation, economic stagnation, unemployment, crime, ruined agricultural sector and decaying public services. (Testimony on the social and political costs of the theft of public funds by African Dictators: US House of Representatives Committee on Financial Services by Michael Chege, University of Florida, May 9, 2002)

Recent surveys carried out by the World Bank in a series of developing countries to compare budget allocations to actual spending at the facility level have confirmed that resources are not allocated according to underlying budget decision. In Uganda and Tanzania, large parts of funds were diverted elsewhere or for private gain. (U4 Utstein Anti corruption resource website) Peter Machungwa, Home Affairs Minister, Godden Mandandi, Works and supply Minister were arrested on Tuesday night in connection with the disappearance of $2 billion in government funds.(Business Day, October 24, 2002) Paul Tembo, former deputy minister of Finance, was shot dead in his home hours before testifying in corruption trial of three cabinet ministers. (BBC News, July 9, 2001). Zambian police and politicians have been identified to be the worst corrupt elements in the country. (AllAfrica.com, March 1, 2001)

Other names mentioned by the French Weekly were President Henri Bedie of Ivory Coast, 2 billion FF (or 300 million); President Denis N'guesso of Congo, 1.2 billion FF (or 200 million); President Omar Bongo of Gabon, 0.5 billion FF (or $ $80 million); President Paul Biya of Cameroon, 450 million FF (or $70 million); President Haile Mariam of Ethiopia, 200 million FF (or $30 million); and President Hissene Habre of Chad, 20 million FF (or $3 million). Bear in mind that this list does not reflect the actual amount of money stolen out of Africa by these dictators. Factually, the mentioned figures had changed significantly since the French Weekly article was published in 1997. There are now new African billionaires and millionaires, including indicted former Liberian President Charles Taylor, President Gabassinga Eyadema of Togo, former Liberian Warlord Alhaji Kromah, former Ghanaian dictator Jerry J. Rawlings, and the late President Samuel Doe of Liberia; a host of African government ministers would make an updated list. While returning funds stolen out of Africa is the right thing to do, efforts must be made by the West and responsible African governments {i.e. the government of Botswana, etc.} to alter international banking laws that will make it difficult for Africa's government officials and corrupt business personalities to transfer huge funds into western banks. The measure was first proposed following the September 11, 2001 attacks but was rebuffed by western financial institutions. Again, we need to revisit this issue: the terrorists could use the thieves in Africa's government Ministries to transfer money into western bank accounts—the money could be used at a later time for terrorists' activities

Arap Moi's Loots

The Kroll report revealed an intricate network of companies that were used to transfer billions of shillings to foreign countries like the United Kingdom, Australia, Switzerland, the Cayman Islands and Brunei among other countries using shell companies and dummy trusts registered in safe havens. The report also revealed the individuals and wealthy families who were behind the siphoning of enormous amounts of money out of the country and the banks that were involved. The Kroll report described in detail the assets owned by various politically connected families and individuals in a total of 28 countries across the world including hotels and residences in South Africa and the United States, a 10 000 ha ranch in Australia,3 hotels in London, a 4million pound house in Surrey and a 2million pound penthouse flat in Knightsbridge

Mother Ghana

I love Ghana, my mother land. Ghana is my only home. I must protect its people, its culture, its peace, its economy and its democracy and our children's children so that future generations will live to enjoy every aspect of the country.

Yes there are many tribes, languages, dialects and cultures but we are all Ghanaians. There is no tribe but Ghana. There is no political party but Ghana. Peace and unity is what we need to build the country. Politicians and political parties will come and go but Ghana will remain. So if we build it well today, our children will live to bless us. Together we stand divided we fall.